John Fales was scammed.
He was duped, defrauded and cheated out of $3,500. The 19-year-old KU student is sitting on a substantially overdrawn bank account, and he says it's because he didn't check whether something that seemed too good to be true actually was too good to be true.
Fales, a 19-year-old KU student from Fayetteville, N.C., put a television up for sale on hawkchalk.com. A man saw his ad on the online marketplace that makes classified ads available for free to KU students and contacted him about purchasing the TV.
But there was a catch. In a series of e-mails between Fales and this individual, Fales agreed to accept a check for more than the purchase price and then wire the balance to shippers for other products the purchaser said he was buying.
Fales cashed the check at his bank on Feb. 20. He took the approximately $3,500 in cash to Western Union and wired the money to two men in the United Kingdom. When he looked at his bank account's balance online on Saturday, he was overdrawn by $2,300. The check had bounced - and the bank was holding him liable for the funds.
The e-mails Fales provided are full of what could have been potential warnings. They contain several typos that don't even seem to be reasonable mistakes, and they all implore Fales to act as quickly as possible.
"The more I reflect on it, the more I wonder, 'What I was thinking?'" Fales said.
This sort of scam happens all the time, said Joyce Woodard, president of the Better Business Bureau of Northeast Kansas.
"We see thousands of dollars being lost this way," she said. "We see people losing houses and horses from doing business like this."
Fales reported his plight to the Lawrence Police Department, as well as the Federal Bureau of Investigation, but he's one of a number of people who have been victims of similar crimes.
Sgt. Paul Fellers, Lawrence police spokesman, said the department has seen fewer cases like this recently, but some new version of a scam always seems to be making the rounds.
AVOIDING FRAUD
Local experts offered this advice to avoid being a victim of fraud:
¢ Use extreme caution in any financial dealing.
¢ Educate yourself about scams going around.
¢ Be skeptical, especially any time your only communication with someone is via e-mail.
¢ Talk with a banker about potential problems that could crop up if the scam involves you obtaining money from your bank.
¢ Do business locally with people you can meet in person.
¢ Check with the Better Business Bureau about anyone you are doing business with.
¢ Report the crime at www.ic3.gov if you do become a victim.
Sources: Better Business Bureau, Douglas County Bank and the Lawrence Police Department
Email Fraud
"People who commit these crimes reinvent the wheel all the time and dupe people again," Fellers said. "If you're offered more money than the price of what you're selling, it's certainly something we discourage doing."
Fellers said his department tries its best to find resolution in crimes like this, but often its hands are tied.
With the way international check-clearing works, there's little recourse for a local police department.
"The best thing you can do is educate yourself and exercise extreme caution," Fellers said.
Adrienne Boyd-Akers, a financial services representative at Douglas County Bank, said her bank has seen plenty of cases like this.
"This is just one type of scam," she said. "There's no reason anyone would need to send you a check for more than the amount of purchase."
Though Fales doesn't bank at Douglas County, the process a bank goes through when clearing a check is virtually the same anywhere. It can take as long as a couple of weeks for the bank to determine whether a check is genuine, though it generally takes about a week, Boyd-Akers said. Until then, customers don't have the money from the check.
Boyd-Akers suggested that people employ a heavy dose of skepticism and talk to their bankers if they have any questions about how something works.
"This can be very costly. More and more people are falling victim to those kinds of scams," she said.
As for Fales, he's trying to get help from family members to cover the overdraft. His father, who was stationed at Fort Riley, deployed to Iraq two weeks ago. He's trying to avoid asking his mother for help because he doesn't want to add to the stress she's already feeling.
So far, he's optimistic that other family members will be able to help. Fales already has made one change in his behavior: He won't be selling anything else online.
"There's not a chance I'll ever do that again," he said.
Comments
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classclown (Class Clown) says…
This scam is as old as the hills. Anyone stupid enough to fall for it deserves what happens.
oldgoof (anonymous) says…
Economic Darwinism at work
LovingLawrence (anonymous) says…
It boggles my mind how someone could fall for a scam like this...a little old lady, maybe, but a college student? I really have no sympathy.
davidnta (anonymous) says…
If this scam is as old as hills, how old do you think this kid would have been when it first came out and how prevalent was it in the news media?
I bet you he was sitting around thinking how it would affect him when he would be old enough to vote. Go ask a 12-15 year old if they know what a 419 scam is, and see what they say.
Sigmund (anonymous) says…
Tuition at the School of Hard Knocks, $3,500. Let's hope Mr. Fales has learned his lesson well and after passing his final exam, decides it is not necessary to seek an advanced degree.
compmd (anonymous) says…
honourable mr fales:
my name is frank i am the nephew of a lawmaker in your state of kansas.i am sory to hear about your recent truoble selling your tv on the internet. i can help you recovver your lost money. i am told you are in need for $2,300.00. i have a busness proposition for you. ih have a banque cheque made out to cash for $2,500.00. iw ill send you this check and you can ccash it and then send me the remaining $200. all your debt will be cleared up and we will both benefit form this transaction. please contact me soonest so i know where to send the cheque. may you have a peaceful day.
sincerely,
mrs james hollingdingtonsworth
In all seriousness, if you are an adult and fall for this, then I believe it is my job to inform you that the word "gullible" is written on the ceiling. Sigh. Greed makes people stupid, and the Internet makes stupid people even more stupid.
trinity (anonymous) says…
lol compmd-i don't know *how* many of just those type of letters i've gotten in the email! geeeez. torn between feeling sorry for this doofus kid&wondering where he left his common sense. sounds like he's learned, though.
imastinker (anonymous) says…
It's very sad. Guess that's what a North Carolina education gets you!
Prydain (anonymous) says…
Check out:
419eater.com
The_Original_Bob (anonymous) says…
Compmd wins. Quality!
geekin_topekan (anonymous) says…
Is the TV still for sale?
PM me with details.
mom_of_three (anonymous) says…
There are stories about this scams all the time. I probably receive 1 or 2 of these emails a week through the spam filter, and don't even want to know how many I don't see.
But I usually receive the hard luck kind.
Too bad for this kid.
Hopefully, someone else can learn from this story, and not become a victim.
lunacydetector (anonymous) says…
i hope this guy never receives an email from nigeria. a very liberal friend of mine fell for this scam and even bought airfare to england to collect his money....notice how i said my friend is liberal? actually, he's not really my friend, just a very liberal idiot.
consumer1 (anonymous) says…
Forrest, Forest Gump would say, "Stupid is, as stupid does".
common_cents (anonymous) says…
All I can say about this is:
Dee Dee Dee
Bladerunner (anonymous) says…
Good link Prydain.
These scams are very common. I enjoy baiting the scammers. If you play along with them they will waste their time and funds fed-exing you checks and sending you more emails. As long as you can keep them busy..they have that much less time to victimize someone else! Of course...you dont want to give them your real address.
ljreader (anonymous) says…
"We see thousands of dollars being lost this way," she said. "We see people losing houses and horses from doing business like this."
_______________________________
I wonder how many people have lost horses?
OldEnuf2BYurDad (anonymous) says…
"mrs james hollingdingtonsworth"
Excellent fake-British name. Good one. Almost as good as Irwin Fletcher's "Mr. Cocktoasten" or "Dr. Rosen-Rosen".
The_Original_Bob (anonymous) says…
My cousin lost 2 palominos and a shetland to this very kind of scam. Tragic it is.
H2Hummer (anonymous) says…
90+ % are republicans
Don't be ridiculous.
The Republicans might consider hiring someone to scam people on the internet but we are way to busy counting our oil royalties to bother with such drivel ourselves!
Avoiding Internet Scamming should be a required 1 hour general education credit for all college freshman!
emilyhadley (Emily Hadley) says…
Wait, he wired the excess money before even making sure the check cleared?
And he cashed it, rather than deposited it, yet it overdrew his account ?
ljreader (anonymous) says…
How does the horse scam work? They promise to send one BIG horse, and you return a couple of miniatures or ponies?
I've heard of people losing their asses to a scam, but never their horses.
bearded_gnome (anonymous) says…
LJ,
I noted the "horses" too...however, guess need a lot of horse byproduct for these scams? seriously, I think the reporter's spellcheck slipped a diode.
***
this guy just seems too stupid to have money! if it seems to good to be true... it probably IS!
crazyks (anonymous) says…
I know this is legal for banks to do, but it just doesn't sit right with me. If the bank can't tell whether a check is good or not, how is the common person supposed to know? And this kind of thing applies to much smaller checks, too.
Although I have to say that this kid was just asking for it. This scam could easily have been spotted a mile away.
I get those nice little e-mails all the time from the scammers, claiming they have money over here and are in another country, and need your help in getting it out, and will give you a percentage for your help; yada, yada...kind of fun to read at times, but of course you should never respond.
RonBurgandy (anonymous) says…
Yeah, most people could recognize a scam like this, but sometimes people make mistakes. He's learned his lesson, he's not looking for sympathy from the community, maybe he/ljworld just wanted to get the word out to some people who may have never heard of this, who knows.
Of course it was a dumb move, but don't throw the kid to the wolves because he made a mistake with his own money, it doesn't affect you at all. A lot more people have done a lot more stupid things.
SoundMind (anonymous) says…
"I am glad to see that Carlos Mencia is penetrating into the REAL world!"
You mean the Carlos Mencia that isn't really Mexican (he's half German and half Honduran and his real name is Ned) and steals other comedian's stuff? THAT Carlos Mencia? *wink*
http://www.byroncrawford.com/2007/02/...
Here's another good website for anyone interested in becoming a scammer baiter:
http://www.thescambaiter.com/
The_Original_Bob (anonymous) says…
Soundmind -
Wait. Joe Rogan is the voice of reason here? I never found Carlos Mencia funny.
Reminds me how Dennis Leary built his career stealing from Bill Hicks.
--
Marion
I'm just happy the horses didn't end up in the hands of the Nigerian gangs that kidnap folks.
betti81 (anonymous) says…
crazy,
when you accept a check from someone, you are accepting it "in good faith". The bank then accepts it from you "in good faith". When the check doesn't clear, the bank takes the money from your account (usually charging a fee). It is then your responsibility to collect the funds from whomever you accepted the check from.
---------------------------------
As a former banker, I have two problems with this story.
1. Most banks have a "funds of availibility rule" governing cashing checks. I worked at two different banks, and unless the check was gov't issued, a payroll check (one that can be verified), or drawn on the bank, a customer could not cash a check for more than they had in their account. This situation does not seem to meet these conditions. These rules are to protect the bank and the customer and should have been implemented in this case.
2. A good teller should have spotted this scam (and may have). It was part of our training. A good teller would have advised the customer of the possibility of the check being part of a scam. Now, granted the customer can always go ahead and complete the transaction, but the teller and manager can also refuse the check.
my two cents.
hawklet21 (anonymous) says…
NOOOO!! please keep carlos mencia out of the "real world!" we have enough ignorant racists with lame jokes as it is.
SoundMind (anonymous) says…
"Wait. Joe Rogan is the voice of reason here?"
Lordy, no. Joe Rogan is only slightly less unfunny than Carlos Menstelia.
Meatwad (anonymous) says…
A fool and his money. I can't help feeling that some people do deserve to lose their money. These are the people who keep these scammers in business so they can annoy anyone selling anything.
It really is ridiculous that banks will just hand over money. That needs to change. The stupid need to be protected obviously.
EVERY time I've had anything for sale on Craig's List, I've gotten 5 phony 'overpayment scam' emails for every 1 legitimate email. KU's 'hawkchalk.com' should post warnings like Craig's List does.
But aside from all that, I would like to talk to Mr. Fales. I actually have a bridge he may be interested in buying. It's in Brooklyn.
The_Original_Bob (anonymous) says…
Soundmind - That's my point. Funny to see two no-talent hacks going at each other.
Confrontation (anonymous) says…
Common sense. That's what these XBox kids are missing. Stop drooling over the money and use a brain (maybe not yours, but contact someone who has one that works). I wish these scam artists would have to pay for their crimes, but stupid Americans make it too easy for them to get what they want.
crazyks (anonymous) says…
Betti,
I once had to wait for a check to clear before the money was available for me to use because I didn't have enough money in my account to cover the value of the check.
Why they made me do this I don't know. It was an insurance check (someone rammed into my car), and I'm sure somebody there had already heard of American Family.
I also once had to wait for a check to clear that my uncle gave me, for the same reason. The odd part about it was that his account was at the same damn bank, and all they had to do was look at his account and see if he had enough to cover it. Sheesh.
EvanstonReader (anonymous) says…
As a current banker, here are my two cents. When you cash a check you are setting aside funds in your own account to cover the equal amount. However, most banks now have next day availability on all funds, so even depositing a check can still lead to these situations.
As to someone's uncle's account at the same bank, if you needed the funds right then you should cashed the check first, then deposit the funds as cash (assuming your uncle had the funds to pay the check). By depositing the check it runs through a process that is hindered by either technology or bank funds availability policy.
A good teller should have caught this, yes but bear in mind three issues:
* tellers have a very high turnover rate as they typically are the lowest paid and least educated employee in a bank. Some are very good, but most are not.
* college students are not always the nicest and/or chattiest customers. The teller may have simply cashed the check without having a conversation beyond simple hellos. Or if the college student was rude the teller simply could have just cashed the check as instructed to by the customer.
* The college student may have had more then enough to cover the check when he initially cashed it.
Beyond nothing is good as cash, except cash now. The difference between a cashiers check/MO and a personal check is that one is backed by a bank owned account and the other is backed by a personal account. Cashiers checks/MOs are just as easily defrauded as personal checks. A popular scam is to purchase a $1 - $100 cashers check wash it and reprint for a higher dollar amount. Many of these are seen in used car purchases. They buy your car, but the cashiers check they got from the bank where they cashed their insurance check from their last car is higher then yours, by say a few hundred to thousands of dollars. They even go with you to the bank to cash/deposit the check. They are long gone with your car before the bank detects the fraud. Even they say they will wait to receive the difference from the check until it clears, they still have your car, which they bought for $1 -$100.
Sorry this is so long.
warthog (anonymous) says…
As I've always said, a required freshman course should be Common Sense and How to Use It. One writer put it, "this scam is as old as the hills." And yet another writer defended the victim as not being old enough to remember it.
Pardon me, but... "huh?"
Yes, this scam has been around for quite a few years. It did not appear and then disappear. It has been prevalent on the internet for some time. Just a few years ago, one KU student worker almost fell victim to the Nigerian scam. In spite of warnings from co-workers, it took him some time before he realized he was being led down the primrose path. Fortunately, he came to his senses before he lost his money. This was an intelligent young man, but, humans being the greedy things that they are, he believed he could make an easy fortune.
budwhysir (anonymous) says…
is it realy a scam when people should know better????
i always thought a scam was misrepresenting the truth. this type of transaction would not be along the lines of a straight forward transaction. but anyhow,
cowgomoo (anonymous) says…
419eater.com is an awesome site.
I responded to one Nigerian scammer and told him that I would only do business if we exchanged "mutual signs of respect." I gave him my fake name and got back a picture of him holding a sign that read "I respect Mr. Brown-Eye"
Ha! It's my computer wall paper now.
classclown (Class Clown) says…
Posted by imastinker (anonymous) on February 28, 2007 at 8:12 a.m. (Suggest removal)
It's very sad. Guess that's what a North Carolina education gets you!
===================================
As well as showing what low standards are required to go to KU.
misplacedcheesehead (anonymous) says…
Marion:
I absolutely LOVE you for correctly pointing out that the 419 scams originated in Nigeria. Amen!
Guess what else comes primarily from Nigeria? Marriage/Immigration fraud!!
While it is certainly true that the young man mentioned in this article should have used his brain, he is far from alone.
I know someone who knows someone who was STUPID enough to marry this Nigerian female canine, just to keep her from being deported, or from having to follow the required LEGAL steps to stay in the U.S. The woman told the man they only had to stay married for one week, and then could get it annuled, and she would be all "set up".
The American man who fell for this is 45!!!
I personally feel there ought to be a special sub-section of Hell reserved for those who practice these sort of scams, whether it involves money alone, or something that is supposed to be held in high regard, i.e. marriage.
TheEleventhStephanie (anonymous) says…
"The more I reflect on it, the more I wonder, "Am I retarded?'" Fales said.
bearded_gnome (anonymous) says…
?
AmyJJ (anonymous) says…
I think it is rather sad that so many are being so cruel to this poor kid. I am sure everyone has been duped at some point in their lives. We may not have lost a great deal of money but we have had some experience where we too were manipulated.
When a young inexperienced person is desperate for extra income, they are at risk for this sort of scam. I am sure he has learned his lesson. He will waste no time joining the ranks of the enlightened paranoid pessimists that these types of experiences tend to breed. I'm sure he is already losing his appreciation for humanity as a whole. Thank goodness there have been so many negative and demeaning responses to this poor kid's misfortune. Luckily your browbeating him with humiliation will further instill the negative attitudes toward his fellow man that you yourselves are conveying. At this rate he'll never trust another human being ever again. I mean, if you had all been more sympathetic, then he might have forgotten the thousands of dollars he lost, and started focusing only on his mother and father and what they must be going through right now. Now, at least, he can get an even earlier start on becoming a disgruntled bitter fellow citizen, instead of the happy and well adjusted young person he was hoping to be. Ain't humanity grand.
I think it took courage to tell his story, especially knowing the kinds of responses that would inevitably ensue. As many have already said, this kind of scam has been around for a long time. Maybe if those who new of its existence had reported it earlier or more often, then we would have fewer kids loosing their money. I'm sure Mr. Fales will be using the age old rule, "If it's too good to be true, it probably is." Give the kid a break. Go browbeat some other innocent victim.